Former U.S. Federal Reserve Chairman Alan Greenspan said complying with Sarbanes-Oxley has prompted a number of U.S. firms going public to float their stock on overseas markets, the Financial Times reports. As a result, he predicts U.S. regulators will end up making changes to the regulations.
"The Sarbanes Oxley Act has created significant problem for foreign investors with its regulatory structure," Greenspan said. "I am nevertheless acutely aware and disturbed by the fact that initial public offerings have moved away from the U.S. - and to a large extent have moved to London."
"My impression is that there will be changes," said Greenspan.
However, former New York Mayor Rudy Giulliani said he expects foreign markets, including London and Tokyo, will eventually adopt regulations similar to Sarbanes-Oxley.